StockNews.com Lowers TransAlta (NYSE:TAC) to Buy

StockNews.com lowered shares of TransAlta (NYSE:TAC) (TSE:TA) from a strong-buy rating to a buy rating in a report issued on Monday.

TransAlta Stock Performance

Shares of TAC opened at $9.31 on Monday. The company has a quick ratio of 0.75, a current ratio of 0.84 and a debt-to-equity ratio of 3.43. TransAlta has a 12-month low of $5.94 and a 12-month high of $9.55. The firm has a market capitalization of $2.78 billion, a PE ratio of 6.00 and a beta of 0.91. The stock’s fifty day simple moving average is $8.27 and its 200-day simple moving average is $7.31.

TransAlta (NYSE:TAC) (TSE:TA) last released its earnings results on Thursday, August 1st. The utilities provider reported $0.13 earnings per share for the quarter, beating the consensus estimate of $0.05 by $0.08. TransAlta had a return on equity of 47.71% and a net margin of 18.41%. The firm had revenue of $425.37 million for the quarter. During the same period in the previous year, the company posted $0.17 EPS. As a group, research analysts predict that TransAlta will post 0.75 earnings per share for the current year.

TransAlta Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 1st. Shareholders of record on Sunday, September 1st will be paid a $0.044 dividend. This is a positive change from TransAlta’s previous quarterly dividend of $0.04. The ex-dividend date is Friday, August 30th. This represents a $0.18 annualized dividend and a yield of 1.89%. TransAlta’s dividend payout ratio is presently 10.97%.

Hedge Funds Weigh In On TransAlta

Several hedge funds have recently added to or reduced their stakes in TAC. NBC Securities Inc. lifted its stake in TransAlta by 156.3% in the first quarter. NBC Securities Inc. now owns 4,100 shares of the utilities provider’s stock valued at $26,000 after buying an additional 2,500 shares during the period. Blue Trust Inc. increased its holdings in shares of TransAlta by 1,381.5% in the second quarter. Blue Trust Inc. now owns 4,237 shares of the utilities provider’s stock worth $30,000 after acquiring an additional 3,951 shares in the last quarter. PNC Financial Services Group Inc. bought a new stake in shares of TransAlta in the fourth quarter worth about $33,000. Mather Group LLC. bought a new stake in shares of TransAlta in the second quarter worth about $64,000. Finally, Janney Montgomery Scott LLC bought a new stake in shares of TransAlta in the first quarter worth about $66,000. Institutional investors and hedge funds own 59.00% of the company’s stock.

TransAlta Company Profile

TransAlta Corporation engages in the development, production, and sale of electric energy. It operates through Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing segments. The Hydro segment holds interest of approximately 922 megawatts (MW) of owned hydroelectric generating capacity located in Alberta, British Columbia, and Ontario.